Federal Reserve chairman Jerome Powell at a news conference on June 19, 2019. The Fed serves the US’ domestic agenda but in effect steers global monetary policy because of the dollar’s importance. Photo: AP
Federal Reserve chairman Jerome Powell at a news conference on June 19, 2019. The Fed serves the US’ domestic agenda but in effect steers global monetary policy because of the dollar’s importance. Photo: AP
Anthony Rowley
Opinion

Opinion

Macroscope by Anthony Rowley

As the US fights inflation with a stronger dollar, what about the rest of the world?

  • The Federal Reserve’s moves have triggered massive capital outflows from China and pushed the yen to multi-decade lows
  • Keeping the dollar strong to fight inflation – in effect a kind of currency manipulation – can be pushed only so far before it triggers extreme volatility and a race to the bottom among export-oriented nations

Federal Reserve chairman Jerome Powell at a news conference on June 19, 2019. The Fed serves the US’ domestic agenda but in effect steers global monetary policy because of the dollar’s importance. Photo: AP
Federal Reserve chairman Jerome Powell at a news conference on June 19, 2019. The Fed serves the US’ domestic agenda but in effect steers global monetary policy because of the dollar’s importance. Photo: AP
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